00:02:00
So, I'm e-commerce entrepreneur. I have some websites which are selling cosmetics, nutritional supplements, toothbrushes, some things like this. And I do it already for five years. And, yeah, we are still growing, we are still building new things. And now we are starting to creating our new stuff by ourselves, not just reselling, but to make it our brands and brand it and sell it for higher profit margins and things like that. We are just focusing on buying the things that people want and which looks really cool, which people see and they want to buy it instantly because they never saw it or they just want to try them. And this is what we focus on because then on the ads we are having bigger returnability and things like that.
00:03:00
So, how did you come up with that idea? Which idea? Five years ago or the idea to build new brands? With reselling, e-commerce, what triggered you to start? The idea started when I was 17 years old and I was studying in high school. And I was a little bit bored because the high school was just, yeah, going there, writing some tests. I spent like one, two hours a day learning stuff and I was like, yeah, I have like 10 hours doing something. And then I always wanted to do business. So, one day I said to myself, okay, there is a WordPress, which is a platform, the biggest platform in the whole world. And everybody was saying, all right, there is a WordPress, but it's hard to do an e-commerce store in the WordPress.
00:03:54
So, I was like, okay, I will try it. And from one month to another, I made my first WooCommerce store. It's a platform which is on WordPress. It's a plugin actually. So, I created my first website. How old were you when you created it? 17. I was 17 years old. And I created my first website for supplements, nutritional supplements, some basic vitamins like vitamin C, vitamin D, some complexes, which we are still selling. But it's becoming a bigger menu right now. But, yeah, I created it and I didn't sell anything for half of a year. So, I was just looking at it every day, seeing zero orders and I was a little bit disappointed. And then after a half year, the first order came. So, I was like happy, all right, I did something.
00:04:54
I did something big. It was one month before my 18th birthday. It's a good present. It's a good present. There was also something funny about the name of the person who ordered. Yeah, the most funny thing was my name is Zamecnik. And the first order was from a customer that has the same surname as I do. It was Zamecnikova. But it was not our mom or someone from here. It was just some random person from Czech Republic who just wanted to order vitamins. But it was the first order that I got from the e-commerce store and it was the same name as I have. So, I said, all right, it's some destiny. The present for my 18th birthday. And then this order came and I didn't sell anything for the next three months.
00:05:58
It takes time. I mean, entrepreneurship, everything what you build, if it's either your venture or even your relationship, it takes time. It doesn't sometimes work from the day number one. We were, of course, like exception, right? Yes. But usually people, when they are around 17 years old, they are usually doing different stuff than building the website. They are usually, for example, enjoying life, going out with the friends. And your story was slightly different. So, how was your social life or what actually kicked you to spend your time, your free time with actually building something and not, for example, what other young people are doing? I mean, I had good social life. I was like a normal kid, which was a normal teenager, which just wanted to do something else.
00:06:56
The business, because I like the selling things, even from the start. But the funny fact is that nobody knew about my business in a school for two years. I didn't say anything. Nobody knew except my really best friend, because I just was, okay, I can say it to someone when the success already came. Because just everyone is laughing at you. Yeah, you are creating something and things like that. So, I was like, okay, I will say something already when I build something. So, then everyone knew when I some kind of succeeded. But yeah, I was just a normal teenager. And what kicked me into this business was that I had a relationship with a girl. Then we broke up and I found out that I have now like five hours a day.
00:07:53
So much free time. So much free time. And I didn't know what to do because I already had some hobbies. I was working out. I was doing some sports. I was going with the friends. But still I had a lot of time. I had like, I don't know, like 15 hours a week. And it was a lot of time. From 15 hours a week you can do a lot of things. You can build a website within one month actually. Right now with Shopify and other platforms you can do it even within one week. But back in the days Shopify was not that known. And we have one special platform in Czech Republic called Shopted. Which is the Shopify but for the Czech environment. And this platform was not popular at all these days.
00:08:47
So, yeah. And did you try to build something on Shopify already? Or you still are stuck with the WordPress because you have the e-commerce skills? So, what is your opinion about the Shopify? I mean Shopify and platforms like easy to use platforms like ready to go platforms let's say. Are really good for people who just want to sell. They don't want to care about anything. They are not that technical. And they just want to sell from day number one. WordPress and WooCommerce are slightly different. Because you need to have some skill. And you need to have some knowledge about the environment. Because there are a lot of plugins. There are a lot of deems. There are a lot of modules. A lot of things you have to work with.
00:09:37
And I don't want to say it's hard to get it. But it definitely takes some time. Because it's such a complex environment. And you need to know which plugins to choose. How to combine them. How to get the things which will help you as a person to sell more. And from this perspective everyone can have like 60 plugins in their WordPress store. And the website will be like really slow. It will not work. Because customers want really fast way to buy things and get the things to their home. That's the thing that customers want. They don't want to be stuck in a website which is loading 10 seconds. No, it's like instant gratification. Yeah, like this. And that's what the Shopify gives you. It gives you a really fast store which is not unique.
00:10:38
You will have a store like 100,000 people maybe. But it will work. With WordPress you can have a website which will be unique. But you need some skills, some knowledge. And you need to invest some time. So I invested some time. I was learning about it. I also came through the story that I have 60 plugins on my website. Having like really slow website. Using the plugins that I would not use now. Back in the days it was way bigger mess than it's right now. And yeah, I kept stuck in it. And now I have the really good store, let's say. Really optimized store. Really fast website which I would not be able to have on Shopify. Unless I invest like five times more than I invested on WooCommerce.
00:11:41
Because I'm not actually sure how it works on Shopify. But in the platform called Shopted which is the Czech alternative to Shopify. It's really hard to optimize it to yourself. And to build some custom functions on your backend. They are allowing you to do a lot of things on the frontend. And I guess it will be really similar to Shopify. But you can't do anything at the backend. In WordPress you can do anything you want on the backend and frontend. Which is really good because you can build some custom applications. You can do some custom reportings. And you don't have to rely on a third-party service. Which is sometimes hard. Sometimes you don't want to send data to these third-party suppliers and things like that. So you're quite experienced in WordPress.
00:12:39
What makes you want to continue on the entrepreneurship journey versus just do something in WordPress. Like teach other people how to work with WordPress. I mean the WordPress is really big. There are only like three to four million websites running on WooCommerce itself. And there are way more websites on WordPress. I don't want to say number because I don't know it. But it's like a leading platform for creating websites. So I don't want to be an advisor for WordPress itself because there is a big competition in it. And I don't see a lot of money in it. And also it's not popular in the Czech Republic at all. So I would have to go abroad which why not. But a lot of WordPress people are in India for example.
00:13:44
In the UK and then in America. But I see more. We are now building WooCommerce plugin. So I see myself mainly advising people through this WooCommerce plugin. And not through only saying like do this, this, this. You can find already these people on Fiverr which are optimizing your websites. And I don't want to rely on Fiverr. And they have really low wages. So that's how supply and demand works. I should lower my wage or my hour rate because the Indian people do this. So you're fighting from the start of the day. You're fighting against the Indian people and Pakistan people which wants, I don't know, like three, four dollars an hour. And they are happy with that because they have low life standards. So we are now building a WooCommerce plugin.
00:14:43
And I want to give the experience through this plugin and maybe help people to work with WooCommerce in a more sophisticated way. And it's also because you saw the gap inside the WooCommerce. This is how you get the idea with the plugin itself. For example, for me, when I go on WordPress and when I do my own website, I use a lot of plugins. And I can really imagine there is a lot of potential inside there. There is a lot of plugins, but not a lot of plugins are, for example, customized to my needs. And the basic mistake that you do with WordPress is usually that you overplugging it. Like that you really have a lot of plugins, etc. So you really saw the gap that not only like it needs just a small tweak from the plugin, which is already there.
00:15:38
But that you want to develop your own or how did you assess that this is the way, where the money are? Because this is what you said that like in the WordPress advising. Yeah, definitely. I want first to say that this is not a plugin which we started a week ago. We do it for one and a half of a year and it will come in definitely one or two months. Because we are on the final way and we already have a lot of things which have to be done to be on a WordPress library of the plugins. So it will definitely come out and this is not something like, yeah, I will do something big and things like that. It will definitely happen. When we started doing e-commerce, I almost bankrupted at the start.
00:16:29
Because when I saw that things are selling, I wanted to buy more brands. I wanted to sell more and by doing this you destroy prices. So you lower the prices on the market. It's the easiest way how to sell things online. You just get some product and you lower the price. You will sell, definitely. But what are you doing? That you are lowering also your profit margins. And we are lowering your profit margins. Maybe you will not be profitable then. So that's what I was doing because it worked from the start. We started selling because we lowered the price. But it was okay. When you are lowering the price from the 50% profit margins and having now 40%, completely fine. It's good.
00:17:16
But when you are doing it from the 30% profit margins to 20% profit margins, it will end in a really bad way. And it will happen to me that I was buying these things and lowering the prices, having 20% profit margins and I almost bankrupted. That's what happened actually. And my parents didn't want to talk to my business. But our mom is a financial manager. She said, okay, do whatever you want, but we will do a financial controlling of your business. In a case we don't get bankrupted. Yeah, that's the thing. She just wanted to make sure that we don't get bankrupted as a family because of my bad decisions. So she did the financial controlling of my business and I really fastly found out that I'm in minus. Wow.
00:18:18
Hard to realize. Yeah, that was the reality that most of the people don't actually know that they are in minus. Most of the people are just counting their profits that they have money on their bank accounts. But that's bullshit. When you are selling a lot, you don't have anything in stock, in inventories. You can have a lot of money in your bank account. And from this money, if you buy a car, you're done. You're just done. Your business is done and you will end up with a debt. So that's what we did. That's what we did at the start of my entrepreneurship journey and what I recommend to all of the people. Do a financial controlling even in Excel. You know, do like, yeah, I have this 30% margin with these sales.
00:19:11
I have 20% margin account. How much you may count, everything, even the car, even the, I don't know, the things you buy to your stock. Like some small boxes counted because if you have these things, like 20 things that are small, it will count. And the people will really, really fast be in a minus. So that's what we did. And then we found, then like two years ago, I was like, okay, we are doing this. We are pretty good at these things, at monitoring how much profitable we are. And I want to give this knowledge to all of the starting e-commerce entrepreneurs. Because the financial controlling is made in a medium and large size companies. Because it's needed to know how much you are making and only your bank account balance is not enough.
00:20:13
So almost every medium and large size enterprise doing this. But like 0% of small size enterprises do this. Because they don't have money on this, right? So I was thinking that, yeah, but all of this, like small size, like enterprises until 10 employees need to do this. Even though they don't have money to pay to some advisors or some financial manager or something. But they have to do this. And that's why I want to create a software which will make them to count their finances. And make them to look at them and find out, find the reality, find how much they are making, actually. So that's why I was thinking about how to do it and things like that. And I found out that there is nothing on WordPress, on WooCommerce.
00:21:15
And that's why we started to do this. It's basically like you're building a product that fulfills your own needs from the past. I can also imagine that it's like double checking. Because, for example, I have an accountant in Belgium. And myself, I was also really not dependent on my mom. But she has really the financial literacy in our family. So then when I started my own company in Belgium, it was for me like, okay, like how I will now do the business. Because there are slightly like different regulation and legislations in Belgium than in Czechia. So I have actually my accountant in Belgium. But then like I can imagine that this e-commerce plugin can be really useful for you to double check. If what your accountant is, for example, saying is really true.
00:22:02
Or like how he is seeing your, for example, profitability. And then you can do your own decisions based on the data that your accountant is providing to you. But also what you can then see inside the e-commerce platform. And you can do decisions much faster. Because the accountancy is like really like on six months basis, one year basis. And you sometimes don't have really necessary information that you would need to do the decisions. Definitely. I once said it to one entrepreneur, which is pretty big company. And he was like, yeah, that's actually what we do on accountancy basis. Like that's what we do. We measure the profits, right? But when you are doing accountancy, you want to make your profits to be as slow as possible. Because you don't want to pay taxes.
00:22:55
You don't want to pay taxes. You want to lower your profit actually. And that's what we are doing. It's more like it's the controlling. It's called financial controlling for managers. Also it's called profit tracker. It's track your profits. But it tracks your actual profits. You can track it on a day basis, week basis, month basis, year basis. It can be tracked even for two hours if you want to. You can track every order. You can track how much you make from every order. And it's really important to see how much you are making every day. Just to check it. Today I made $20, $100, $2,000. And to see how the business is going and to do, as you mentioned, really fast decisions. If you only track your year profit, you will not be fast.
00:23:55
You will just see, yeah, I make this, I make this. Okay, I will reinvest this. But if you know it from the week basis, then you can see, okay, the next month I will reinvest this. Or I have to cut these costs. And that's the way how to make more profits. That you cast costs actually. That you see, okay, my profit is going down. I need to do something. What you do? You cut costs. You optimize ads. You start selling new things or whatever. You have to hire your margin or anything else. That's the tool that will help you to be more profitable. Making money to people by really easy decisions. But most of the small size enterprises don't do it. That's why they all bankrupt. Because they don't know the reality. It's like what you don't measure, you don't know. And what you don't know, you can't take action on. I think it's an interesting idea.
00:25:04
Like, for example, LinkedIn, where you can become an integral part of our innovatology community. This space is for like-minded digital nomads, like you, who can share, collaborate, and also comment on different tech and innovations. So don't miss out on this opportunity to network with people who are just as passionate about technology as you are. And let's embark on this journey of innovation together. I was just wondering as well, during your explanation, because you were close to bankruptcy and you're still young, what made you continue on the entrepreneurship journey to try something else again, or to keep on trying, rather than, let's say, your peers, even myself, like, let's go work in a corporate, enjoy life, don't be bothered by adventure, let's call it like that.
00:26:05
I mean, from my perspective, going to be an employee has some limits. Some limits from the career point of view, and also from the money point of view, let's Because when you are going to a company, the best thing you can achieve is CEO. And the CEOs, from my perspective, I don't want to be limited by some levels, by some heights, by some rules, let's say. I just want to grow. I want to grow according to what I put in the work. I want to be, I want to be, let's say, limitless, but I want to get as much money, as much whatever, according to what I put in. So if I work 16 hours, I will be two times better than the people who are working eight hours.
00:27:18
And it will, the business will be definitely different in a month, in a year, in 10 years. It will make the difference. But when you work in a company, and you can say it in a corporate, if you work eight hours or 16 hours a day, you will not get a different salary. But entrepreneur will get very different salary in two, three months, because they put way more in, and they will get more out. No, yeah, like in a company, it's more, if you do put in the 16 hours, you don't necessarily get the increase of salary versus someone that works eight hours, but you're in a rat race. So you just want to prove yourself, and then maybe get to a point where you get an increase in salary, but it's different than entrepreneurs.
00:28:09
Yeah, for me, being entrepreneur is the freedom, and also, as I mentioned, I want to get as much as I put in, and to be double, triple, or whatever. So can anyone become an entrepreneur, you think? I don't think so. Why? What defines an entrepreneur? What is the characteristic? The spice, what is there? What is the ingredients? It's really philosophical question. Our philosopher is speaking, sleeping currently. If someone has some entrepreneur in their selves, they can become entrepreneur, and no matter what. But some people just want to be, let's say, followers, and they don't want to be leaders. And for these people, it's not good, because they need to get guidance, structure. They definitely need some... By someone, like if the boss tells you that you should be at work at nine, they will be at work at nine.
00:29:37
But then if you are not self-disciplined to wake up at nine and start work on your business, or to create yourself the structure, the routine to actually move forward, then lots of people, they just want to do nothing. It's, I would say, the difference. If you want to do nothing, then just go to your nine-to-five, and do your nine-to-five, and live... Whoa! That's rough. I mean, I don't do a nine-to-five, but it's not like I'm doing nothing. But I get it. I mean, I do see it as well. There are different types of people, that's for sure. I mean, the entrepreneurship is good for people who want to do what they want, and they think that it's good, or that it can change something.
00:30:31
And then in the future, the successful entrepreneurs are the ones who don't go for the money, but they go for the way, they want to enjoy the path, and to change something, to help some people to do things. Yeah, that's what I think. I have a question regarding what are the tools that you are using currently, like the instruments online, on your computer? What are actually the softwares that, let's say, three to five softwares that you really use on the daily basis, and you wouldn't be able to live without? Or even the skills that, for example, that you learned with WordPress was really game-changer in your career? And I'm really sure that you're also using WordPress on your daily basis. So what are the three to five softwares that you really would put in the package?
00:31:31
Like, yes, this is like, for example, some people, they use the pen every day. What are your five, three to five softwares that you wouldn't be able to do your activity without? Okay, so you mean basic softwares, not the digital marketing ones? Because there are some also, but they are different package, I would say. Because there are digital marketing tools, which I'm using every day, like Google Ads, Meta Ads, but these are more just a way to promote business, and they're not related to some big picture of the business itself. But definitely ChatGPT, the everyday platform assistant I work with when I want to do some things, to, I don't know, edit some text or whatever, write something, I use this. Then definitely Excel. I mean, this is never-ending software.
00:32:33
The best thing ever, you know, I think. Excel just easiest way and the best way how to measure anything. Also you can use Power BI, but Excel is still Excel. The next stuff, definitely paper and pen. I still use paper and pen to write everything. Can you use digital paper? But I guess the pen and the paper is so underrated. Like come on, the best thing how to organize yourself is to write things. Yeah, I also have it. I agree. But you're killing trees. Do you want to go to this ecological discussion? But he's the guy who doesn't ride a bike, so like, I mean, he can afford to kill the tree, right? But I mean, I understand. I mean, I only remember things when I write things down.
00:33:29
Yeah, for me, I remember everything what I write, so yeah, this is... Do you? What? Do you remember everything that you write down? Yes. Okay. Yeah, I mean, it gives you so, it gives you a lot of dopamine when you take some box, some task, it gives you dopamine. So I write everything I have to do, even small things. I write even some one task into like five small tasks and take them every time I do them, because it helps me to think that I do a lot of things. Because when you write one task that you will do in three weeks, and you don't take anything for three weeks, you will get depressed. Because you think that you did nothing.
00:34:19
But if you write these tasks into 100 minute tasks, and taking every day, like 10 of them or something like this, then you will be like thinking that you are something. So I think the paper and pen is still one of the best tools everyone could develop. And I think that it will not be changed, it will not be over performed or, yeah. And what about like Adobe Creative Suite or like, for example, creative softwares, because you actually, before you started with WordPress, I guess you already had some creative skills that you could work with, the SVG that you knew, like how, for example, animation works, etc. So what was this maybe game changer that you even use until today? The good thing to mention that I came to the e-commerce sphere, to the e-commerce world with some skills.
00:35:24
And one of the skills was creating videos and editing photos. So I was able to create some infographics, I was able to create some small videos. And I use for this Photoshop and I used to work with Adobe Premiere, but right now when I cut some small videos, I use CapCut because it's easier and more interactive, let's say. So Photoshop mostly, I use Photoshop on a daily basis though, because all the time when you want to edit some product, some photo, you need to do this through Photoshop and it's the easiest way to do it. And you don't want to pay someone to do it for you because then you would just say... No, it's easy, I can do it in two minutes, it's nonsense.
00:36:15
But a lot of people are scared sometimes to use the Adobe Creative Suite or like these creative stuff, but then like it's on the YouTube. And would you maybe say that this is the game changer where like this is like really the thing that the entrepreneur should have to really like, for example, start a business? Definitely. I think that when you are young and you want to be an entrepreneur, you need to have some skills which will differ you from the other people. And it can be creating really good websites. It can be being a good marketer, like creating the videos, creating the reels, having a skill to set them up, the ads or editing videos or working with Photoshop or be good at, I don't know, statistics.
00:37:08
But you need to have some skills which will differ you from the others. And I think that the entrepreneur from the really start should have as most of these mini skills as possible because then, because when you are a young entrepreneur or any entrepreneur at the start and you don't have money, you need to learn everything by yourself and you need to have as much skills as possible and use them. And then when you are bigger and bigger, you just hire people and if you know these skills, you can just say, wait, don't do this, do this, blah, blah, blah. And you can just look at these things and know what these people are doing and know that they are doing it right.
00:38:00
Because if you don't know anything about ads, if you don't know anything about how to create really like the ad, which is performing good or how to set it up and you hire an agency, they can get a lot of money from you and don't even doing anything good for your business. Yeah, that's true. So when you are starting and you don't have money, you need as skills as possible and then to delegate the work to others, but still look at them and looking and thinking that they are doing it right. It's really important because it's like with ad enterprises, agencies, it's really typical that they want to get as much money as possible from you and they can spend it on really bad things, on things that are not working.
00:39:02
And if you don't know how it works, then good luck with it, you will lose a lot of money. So now what I'm doing now when I'm hiring new people, when I'm even sometimes getting agency to work for us, I ask them, you do this, you do this, what is your returnability of the tools, what you want to do? Because I know in general what they should do, but I don't have time to do this because I work on other things which are better for the company than working manually and setting up the ads. So I just control them and making sure that they do a great job, which will work. And what does success mean for you at the end of your entrepreneurship journey?
00:39:51
I mean, for me, success is the path, the way that I'm going and I enjoy it. And I mean, success for me is to working on something that I enjoy and help other people and also that I get the money from it, because money are important and we will not say that they are not important, because I mean, they start losing the importance when you lose some kind of, I would not say the wage, but some kind of net worth, because when you have some kind of net worth, you can get everything in a store and you're happy. And this is, I think, is the freedom you want to get from the money. You want to go to the store and don't think what price of the ham is now and how much you have to pay for the cheese.
00:40:52
And this is the freedom that the money gives you. So this is the part of the way. But I want to do things that I enjoy and giving me some meaning of doing and just wasting my time in the things that are useless. And I enjoy building. So I enjoy building some business. I enjoy to giving their additional bricks and building something bigger that helps even me, even others, even giving the people work which they enjoy. They want to do it for me, really enjoyable. Was it always like this, that you always were focusing on the journey, like the success you saw in the journey? Was it always like this, even when you were younger? I mean, every entrepreneur focuses on the money from the start because they want to get money.
00:41:58
But when you get more money, more money, more money are floating, then you start focusing on this because you get that the money are good, but are not the main, the main stuff from the entrepreneurship, let's say. Why are you laughing? I felt that it was like a trick question that you were asking to your brother. I felt it was like a low jam. A collection of interest, maybe. No, it was because I remember that when you were younger, that you really wanted to already be there, like that you, for example, had like smaller dreams and that you wanted to achieve something and you already wanted to be there and you were really impatient. And this really, like I think, changed in the good way that you are really focusing on the journey because the dreams will always be bigger and bigger.
00:42:52
And it's not at the end just about the final destination, but about the path. Definitely. When I was younger, I wanted to have everything like this, but it changed because I found out that there is no finish line, there is no like ending. If you are an entrepreneur and you don't want to retire at 30, you will just work all your life. And that's what I want. I want to work all my life on something that's meaningful for me. But yeah, I wanted to go to the finish, to the end of the entrepreneurs and sell business for like millions or billions of dollars. But right now I'm like, yeah, I enjoy the story. I like building it and that's what I enjoy. That's nice. That's nice.
00:43:46
I think that's come when the entrepreneur wants to be successful in the long term. They have to admit that it's not about the destination, but about the path, because without this they will not be, from my point of view, successful. And if you are giving a lot of hours in it and you don't enjoy your life, I mean, I'm not talking about a work-life balance, not like this, but if you don't enjoy your life in a way that, I don't know, you just go to nature or things like that and you're still working and your life is only work, I think that's not good because you want to be also healthy and you want to, I don't know, enjoy the life. That's the takeaway.
00:44:45
Just a slight disclaimer, because Jan, he will be now 23 years old, if I'm not mistaken. You're 22. You don't know the age of your own brother? I needed to count a bit in my head. You need to write it down, what you write down you will remember. But my question is, what would you, like when you are looking at your whole entrepreneurship path and your career path, would you do, like, what would you recommend to your younger self? Like, so for example, like, was there some, like, what would you recommend yourself when you were this, like, 17, 16 years old when you are now looking at where you are and how you have developed? OK, there are a lot of things, but I would like to say that I would not change anything.
00:45:30
I like the way that I was going because I learned a lot of things and I'm learning by doing things and getting burned and then do it better. But from the e-commerce point of view, I would focus on the basis. So look at profit margins, look at how much you spend on the advertisement and count it. And if you are on the zero and you have really big profit margins and you want to boost the brand, that's good. But, yeah, that's what I mentioned, that the profit margins are the main takeaway from it. That's the most important thing, almost one of the most important things on the business, because it gives you some, let's say, some starting point where your business is heading.
00:46:25
So when you have profit margins, 60 percent, it's way more different than you have 20 percent because the lower it gets with a fixed cost, with a variable cost, the worse it will be. So if you have 20 percent of your gross margin and then you want to get a car for leasing or whatever, you will not afford it. But if you are 60 percent, you get 30 percent on your advertisement, maybe. So also just for the beginners who are listening to our podcast, who don't know what is, for example, profit margin, etc., it means that, for example, if this toothbrush is costing 10 crowns or 10 euros, let's say, let's count it in the euros. It's a very expensive toothbrush. If you are selling it for 10 euros, then actually you are having from it 60, 6 euros.
00:47:16
This is your profit margin that you can then use to boost the advertisement. If you buy this toothbrush from your Chinese supplier or whatever supplier for five dollars and you sell it for ten dollars, you get five dollars and this is your profit margin. The revenue minus COGS, cost of goods sold and into these cost of goods sold, there is counted the production, the logo and everything according to shipping. So if you pay one additional dollar to your Chinese supplier to ship it to Czech Republic, this is also the cost of goods sold. So how much from this you can afford then to boost your brand from each toothbrush sold? This five dollars. This five dollars. But depends what's your strategy. If you want to be profitable from the start, then invest three dollars.
00:48:20
But if you want to have the brand as big as possible, invest five dollars. Be on zero, but it will get back in three, four, five months because the people will return, there will be word of mouth and things like that. So if you want to build as big brand as possible, you can invest everything you make from this toothbrush to your advertisement. But if you want to be profitable, invest just 20, 30 percent. That depends on the goals. Some people are more aggressive on the marketing. Some people want to be more profitable. It depends. It depends on strategy. All right, so I think that this was a really fruitful podcast about all of the tips and tricks and also challenges from young entrepreneur Jan Zamecnik, johnlocksmith.com in the future. But I think that we learned a lot of valuable stuff from the different tools, instruments, also the strategies. We also could hear something from the backstage. So thank you so much for being with us in this podcast and we will be looking forward to maybe having you in the upcoming months when the new plugin will get out and then we can review it together. We can take a look at the different angle of the entrepreneurship and dive deeper into this world. Thank you. You're welcome.
